California’s anti-sweepstakes casino bill, AB831, has passed its final hurdle in the state legislature and will now head to Governor Newsom’s desk for a signature or veto.
The proposal completed the Assembly Floor vote yesterday (September 12), the final day of the state’s legislative session in 2025. It received unanimous support (63-0), meaning not one opposing vote has been registered during its whole journey. However, the bill was edited in a controversial gut-and-amend procedure in June, effectively shortening the Assembly debate on its current wording.
AB831 Will Banish Sweepstakes Casinos From the Golden State
AB831 seeks to shut down the popular sweepstakes casino format in California along with the associated supply chain. That includes any “financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate”. It was amended to its current anti-sweeps content in June and backed by Assemblyman Avelino Valencia.
If signed off by Governor Newsom, it will come into effect on January 1 next year, leaving sweepstakes players in CA with nowhere to go.
Critics have argued that this could drive thousands of players into the arms of offshore internet casinos. That’s because California does not permit regulated online casinos within its borders; the state only allows land-based tribal casinos, licensed card rooms, pari-mutuel horse racing, and the California State Lottery.
California Tribes Close to Celebrating Huge Win
The California Nations Indian Gaming Association (CNIGA) – representing various tribal voices – has been a major driving force behind AB831, as the bill will effectively reduce any competition when it comes to gaming in CA, preserving tribal dominance over land-based casino gambling.
However, cracks did emerge, with at least four smaller tribes voicing opposition to AB831, arguing that sweepstakes casinos could have provided potential revenue streams for their communities. We saw partnerships between sweepstakes casinos and a number of these tribes announced recently, but these initiatives will be rendered untenable if the law comes into effect.
Eric Wright, Tribal Administrator of Kletsel Dehe Wintun Nation, one of the dissenting tribes, spoke at the Assembly:
“We didn’t win the geographic lottery that blessed some tribes with prime casino locations near major tourism and population centers,” said Wright. “It’s deeply troubling that tribes who’ve already achieved massive success through location advantages now seek to slam the door shut on emerging opportunities for those of us who weren’t blessed with prime real estate.”
Opposition also came from Shane Levine of the Social Gaming Leadership Alliance (SGLA), a trade body representing some of the most popular sweepstakes casino operators. Levine reminded Assemblymembers that the state was passing up an opportunity to regulate the format and benefit from $1bn’s worth of economic activity.
Many sweepstakes gaming developers, including slots giant Pragmatic Play, have already pulled out of California, or the sweepstakes format in general. These withdrawals were also likely driven by a recent civil enforcement action filed by the LA City Attorney naming major sweeps operator, Stake.us and some of its biggest gaming suppliers.
A recent report from Eilers & Krejcik Gaming estimates that California accounts for 17.3% of all sweepstakes casino purchases in the US, positioning it as the number 1 market in the country. Assuming the bill is signed, its effect on the vertical as a whole will be seismic.
If the legislature has adjourned for the year – which is now the case – the Governor has 30 days to sign or veto any bill. Analysts expect a signature for AB831, and we’ll keep you updated with any legal developments.
Author: Joseph Allen
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